Kenya Readies Debut Eurobond After 17-Year Wait: Africa Credit

After 17 years, the timing is finally on Kenya’s side as the government readies its first Eurobond sale, betting the nation’s growth prospects and resurgent demand for emerging-market debt will keep borrowing costs contained.

Investors may demand a yield of about 7 percent to buy the securities, less than the 7.48 percent yield on similarly rated Zambian bonds, according to Raza Agha at VTB Capital Plc in London. Aly-Khan Satchu at Rich Management Ltd. in Nairobi sees a range between 7.5 percent and 8 percent, depending on whether Kenya sells $2 billion or $1.5 billion.